Difference between revisions of "How to obtain tax-exempt status"
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=====Form SS-4 Employee Identification Number===== | =====Form SS-4 Employee Identification Number===== | ||
| − | All applicants for tax exemption are required to have an Employee Identification Number (EIN) even if the organization does not have employees. The IRS uses this number as the organization’s account number for identification purposes with the agency. IRS Form SS-4 requires the name, address, and other identifying information of the NGO. This form should be filed in advance of an application for tax exemption as an EIN is needed to fill out the tax-exempt application. | + | All applicants for tax exemption are required to have an Employee Identification Number (EIN) even if the organization does not have employees. The IRS uses this [[Numbers of NGOs|number]] as the organization’s account number for identification purposes with the agency. IRS Form SS-4 requires the name, address, and other identifying information of the NGO. This form should be filed in advance of an application for tax exemption as an EIN is needed to fill out the tax-exempt application. |
=====Form 8718 User Fee for Exempt Organization Determination Letter Request===== | =====Form 8718 User Fee for Exempt Organization Determination Letter Request===== | ||
Revision as of 08:26, 11 August 2008
This article is intended to provide a general description of the process for obtaining 501(c)(3) status under the U.S. Internal Revenue Code and is not intended to substitute for the advice of private counsel on specific issues related to the IRC or the 501(c)(3) application process. Original draft by Bobby C. Neal.
In the United States, a non-governmental organization (NGO) is generally subject to federal, state, and local taxes unless and until the organization qualifies for tax-exempt status. This article focuses on the process for obtaining a federal income tax exemption for NGOs.[1] NGOs that meet the criteria set forth in 26 U.S.C. § 501 of the Internal Revenue Code (section 501) are eligible for a federal tax exemption.[2] The benefits to obtaining tax exempt recognition by the Internal Revenue Service (IRS) include: income tax exemption, eligibility to receive tax-deductible contributions, possible exemption from certain employment taxes, and reduced postal rates. Section 501 describes the organizations that are eligible for tax-exempt status. The most significant category of tax-exempt organizations is section 501(c)(3).
